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Triple Bottom Line Reporting and Financial Performance of Quoted Oil and Gas Companies in Nigeria

Korolo, Emmnuel Omolaye Ph.D.

Abstract

This study examined the effect of triple bottom line reporting on the financial performance of listed oil and gas companies in Nigeria. Specifically, the study investigated the effects of economic, environmental, and social disclosures on return on assets . An ex post facto research design was adopted, using secondary data obtained from the annual reports of eight listed oil and gas companies on the Nigerian Exchange Group for the period 2006- 2024. Panel Least Squares regression analysis was employed to analyze the data. The findings revealed that economic disclosure has a positive and significant effect on financial performance, while environmental disclosure and social disclosure have negative and significant effects on financial performance. The study concludes that economic disclosure enhances profitability, whereas environmental and social disclosures reduce short-term profitability due to the costs associated with sustainability initiatives. The study recommends that oil and gas companies should strengthen economic disclosure practices while adopting cost-effective environmental and social sustainability programmes that enhance long-term value without adversely affecting profitability.

References

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